NV - Health Section 5 Field Underwriting Procedures

In order to comply with Fair Credit Reporting Act, at which of the following times must a producer notify an applicant that a credit report may be requested? a. At the initial interview b. At the time of application c. When the applicant's credit is actually checked d. When the policy is delivered

b. At the time of application

Policy delivery refers to the delivery of the: a. Completed application for the insurance policy to the agency office b. Completed insurance policy to the applicant c. Insurance policy cost disclosure materials to the applicant d. Premium and receipt for the insurance policy to the agency office

b. Completed insurance policy to the applicant

When a policy is issued with a premium surcharge or an impairment rider, what should the producer do? a. Deliver the policy in person, explain the changes and advise the client that they can either accept the new policy or reject it b. Mail the policy out with a note asking the client to call c. Refund the client's premium, since their offer to buy has been rejected d. Deliver the policy as issued, advising the client to read it and call if they have any question

a. Deliver the policy in person, explain the changes and advise the client that they can either accept the new policy or reject it

The Fair Credit Reporting Act requires that: a. The applicant be advised, in advance, that a consumer report may be ordered b. The insurer may not use underwriting information received from producers as the basis for declining coverage c. The insurer furnish the Federal Trade Commission a list of all declined applicants

a. The applicant be advised, in advance, that a consumer report may be ordered

All of the following statements about sources of underwriting information are true, EXCEPT: a. The contents of an inspection report cannot be disclosed to the applicant b. A medical examination is typically used when benefits are large c. An attending physician's statement is a good source of information d. The application is typically the principal source of information

a. The contents of an inspection report cannot be disclosed to the applicant

Which party to the insurance contract makes an enforceable promise? a. The insurer b. The insured c. The producer d. The policy owner

a. The insurer

Coverage becomes effective when the: a. First premium has been paid and received in the insurer's home office b. First premium has been paid and the application is approved c. The producer delivers the policy to the insurer d. The medical exam has been completed and the premium has been paid

b. First premium has been paid and the application is approved

Which of the following statements about a Conditional Receipt is true? a. It becomes part of the policy b. It is an interim Insuring Agreement c. It guarantees that the applicant is acceptable to the insurance company d. It is used to purchase temporary insurance that terminates in six months

b. It is an interim 間歇 Insuring Agreement

Dennis Wiggins makes application for an A&H policy and pays his producer the initial premium. The producer gives Mr. Wiggins a conditional receipt. His coverage will become effective when: a. The producer delivers the policy b. The insurance company accepts the risk c. The insurance company requests a medical examination d. Mr. Wiggins countersigns the conditional receipts

b. The insurance company accepts the risk

Andrew Reed advised his insurance company of a loss covered by his Major Medical policy. If the insurance company does not provide Mr. Reed with the proper claim forms within 15 days, he has which of the following rights? a. To receive immediate payment of his claim b. To submit a description of the loss, in his own words, as Proof of Loss c. To file a suit against the insurance company immediately d. To refuse to submit the required proof of loss

b. To submit a description of the loss, in his own words, as Proof of Loss

If an applicant completes an application for insurance and gives the producer a check for the first premium, the producer should give the applicant a: a. Copy of the policy b. Binder of coverage c. Conditional Receipt d. Copy of the entire contract

c. Conditional Receipt

Which law requires that the applicant be notified before a consumer report is ordered? a. Employees Retirement Income Security Act (ERISA) b. Consolidated Budget Reconcilation Act (COBRA) c. Fair Credit Reporting Act (FCRA) d. Health Insurance Portability and Acountability Act (HIPAA)

c. Fair Credit Reporting Act (FCRA)

On the delivery of an insurance policy that contains an impairment rider for a past health condition, a producer must do which of the following? I. Explain, to the best of their ability, the rider and the specific exclusions II. Obtain the insured's signature on the amendment form III. Change any statement on the application that they think may be incorrect a. I only b. II only c. I and II d. I, II, and III

c. I and II

When completing an application for Medical insurance, a producer should do which of the following? a. Review the applicant's health statement and bind the coverage b. Complete the Medical Information Bureau report c. Witness the applicant's signature d. Sign the applicant's name, if the applicant lives out of state

c. Witness the applicant's signature

If, at the time of application, the applicant does not pay any initial premium, what should the producer do when delivering the policy? a. Ask the applicant to fill out a new applicant b. Ask the applicant to take another physical exam c. Require the client to pay the entire first years premium to start coverage d. Collect the initial premium and ask the client to sign a Statement of Continued Good Health

d. Collect the initial premium and ask the client to sign a Statement of Continued Good Health

A client purchased a Major Medical policy from you last month and would now like to add AD&D coverage. As a producer, you should: a. Mail out a new application, making coverage effective upon return b. Complete a new application by phone and sign the client's name c. Use information in your existing file to complete the new application d. Meet with the client in person and have them complete and sign the application

d. Meet with the client in person and have them complete and sign the application

An applicant for an A&H insurance policy has a heart condition of which he is unaware and therefore he answers "no" to the question pertaining to heart problems. His answer is considered to be a: a. Warranty b. Concealment c. Fraudulent answer d. Representation

d. Representation

All of the following must sign the application, EXCEPT: a. The proposed insured b. The policy owner, if other than the insurer c. The producer d. The beneficiary

d. The beneficiary